Debt Securities
- Available for Sale:
- Accounted for at amortized cost but reported at fair market value.
- Unrealized gain and loss related to change in fair market value; a separate component of stockholders’ equity used. (Not realized until the security is sold).
- Generally smoothes income.
To write down:
Unrealized gains/losses account (contra SOE) XX
Valuation Allowance (to adjust) XX